Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Royal Mail
Royal Mail LON:RMG has issued its full year results this morning and the boom in internet shopping over the last 12 months has delivered handsomely for the company. Revenues grew by over 16%, whilst the adjusted operating profit jumped by 116%. A one off dividend of 10p per share is proposed for the year end, whilst 20p per share has been ear-marked for 2021/22. Parcels now represent 72% of the group’s income and the company also notes that the skew away from letters caused an imbalance that actually cost the business money.
easyJet
easyJet LON:EZJ has published half year results this morning, noting that the low cost airline is the largest operator from the UK to the recently opened up ‘green list’ countries. The headline figures are unsurprisingly disappointing, with passengers and revenues both down 90%, resulting in a headline pre-tax loss of £701m, squarely in the middle of the forecast range. Based on current restrictions, the airline expects to fly 15% of its capacity when compared to Q3 2019, but late booking behaviour will dominate given the government handling of the travel situation – something that makes providing visibility even more challenging. Given the uncertainty, no further guidance is being provided.
Young & Co’s Brewery
Young & Co’s Brewery LON:YNGA has issued preliminary results for the year to March 29th today, in what it acknowledges has been an unusual period. The group has taken opportunities to shore up its balance sheet over the year, as well as making meaningful investments in its estate. Early trading has been seen as encouraging, with the 144 pubs it was able to open for outdoor service achieving 85% of usual trade levels over the 5 weeks since April 12th and the company notes the potential for a strong recovery this summer. Pre-covid levels of trade and margin are expected to be achieved by the end of June, assuming the government roadmap isn’t compromised.
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